Chipotle Mexican Grill (CMG) Retails >80% of Digital Sales as Dining Rooms Reopen, PT Raised to $1,875 at Credit Suisse

April 22, 2021 6:25 AM EDT
Get Alerts CMG Hot Sheet
Price: $1,324.51 -0.53%

Rating Summary:
    27 Buy, 17 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 14 | Down: 5 | New: 58
Trade Now! 
Join SI Premium – FREE

News and research before you hear about it on CNBC and others. Claim your 1-week free trial to StreetInsider Premium here.

Credit Suisse analyst Lauren Silberman raised the price target on Chipotle Mexican Grill (NYSE: CMG) to $1,875.00 (from $1,760.00) after the company reported 1Q SSS of 17.2%, EPS of $5.36 and a restaurant margin of 22.3%. CMG guided 2Q SSS in the range of high 20% to 30%, implying 2-yr SSS of ~15-17% (~21% in 1Q), with April to-date 2-yr SSS ranging high teens to 20%+.

The analyst reiterated an Outperform rating, stating "CMG continues to execute on top-line with a
multi-faceted sales strategy, enhancing visibility to the path to $3MM+ AUVs (a level few systems have attained). We see no obvious capacity constraints to throughput given the company’s double production lanes, which can effectively double in-store capacity at a ~50% digital mix. CMG continues to retain 80-85% of digital sales even as dining rooms reopen, and there appears to be limited overlap between in-store & digital customers (10-15% doing both), underscoring our view that CMG should benefit as consumer mobility increases".

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change

Related Entities

Credit Suisse